Students and faculty members of Texas A&M University at Qatar (Tamuq) took part in a session examining the current and future state of the world’s liquefied natural gas (LNG) industry.
Alice Acuna, senior vice-president, Shell’s global LNG marketing and trading business, presented Shell’s LNG Outlook publication for 2023, which examines key trends in the global LNG industry.
“Qatar is a world-leader in LNG production and supply, and recent events have shown the need to strengthen security of this important resource. Speaking to the students at Tamuq is an opportunity for Shell to share our knowledge and insights with the future leaders of the energy industry,” she said at the event.
Europe’s increased need for LNG looks set to intensify competition with Asia for limited new supply available over the next two years and may dominate LNG trade over the longer term, according to Shell’s LNG Outlook 2023.
The report also states that European countries, including the UK, imported 121mn tonnes of LNG in 2022, an increase of 60% compared to 2021, which enabled them to withstand a slump in Russian pipeline gas imports following its invasion of Ukraine.
A 15mn tonne fall in Chinese imports combined with reduced imports by South Asian buyers helped European countries to secure enough gas and avoid shortages. Europe’s rapidly rising appetite for LNG pushed prices to record highs and generated volatility in energy markets around the world.
At the global launch of the report, Steve Hill, Shell’s executive vice-president (Energy Marketing) said: “The war in Ukraine has had far-reaching impacts on energy security around the world and caused structural shifts in the market that are likely to impact the global LNG industry over the long term. It has also underscored the need for a more strategic approach – through longer-term contracts – to secure reliable supply to avoid exposure to price spikes.”
According to the LNG Outlook 2023, total global trade in LNG reached 397mn tonnes in 2022. Industry forecasts expect LNG demand to reach 650 to over 700mn tonnes a year by 2040.
More investment in liquefaction projects is required to avoid a supply-demand gap that is expected to emerge by the late 2020s.
The session ended with a panel discussion with the presenters, Professor Patrick Linke, Chemical Engineering Program chair at Tamuq, and Professor Victor Ugaz, head, Artie McFerrin Department of Chemical Engineering at Texas A&M University in College Station, Texas.
Both professors agreed that “Shell’s in-depth analysis of the energy industry is greatly appreciated by members of Tamuq. Having the opportunity to engage with senior members from Shell gives students a better understanding of the complexities of the global energy system.”
